The past year has been tumultuous for Latin American politics, characterised by a shift to the right in election results and away from populism in policy, and numerous corruption scandals. Current risk levels are likely to linger in the coming year.

Throughout history Latin America’s fortunes have been tightly linked with commodity prices. It seems we are currently at the end of yet another commodity price cycle. Where does Latin America stand now?

Latin America is slowing down and lower commodity prices play a prominent role. The region is vulnerable to external environment developments, but fairly resilient. Domestic factors give most countries little firepower against external shocks.